Continuing my post series to give some more in-depth reflections on my experience in India. As many of you know, I have partnered with the raw material supplier K. Patel Phyto Extractions Pvt. Ltd. to bring to market more visibility and understanding for Indian Botanicals.
This week, I wanted to continue setting the stage for what sourcing from India
represents to CSR (Corporate Social Responsibility).
In 2014 India became the only country in the world that legally mandates CSR contributions from corporations. After 5 years, the total amount spent on CSR was reportedly 6.8 billion USD.
According to this mandate, any company with a net worth of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more are required to spend at least 2% of the average net profits of the previous three years on CSR activities yearly.
Although the minimum spend is mandated, there is some flexibility on what kind of CSR initiatives are funded. As reported in an earlier post, K. Patel has been developing its Sustainability Plan around the following activities:
🌳 Green Club- A program of mango tree planting for each K. Patel customer.
💦 Effluent Treatment- The treatment and reuse of effluent (10,000 L/day) from factory activities to water the factory grounds and mango trees.
⚡ Biomass Energy Generation- The generation of energy from spent biomass (400+ MT/month) from extraction activities at the factory.
🎒 🏥 CSR Projects- various activities such as philanthropy in medical supplies, hospitals, education and Skill Development Program.
As revenue and profits for the company grows, so will the scope of CSR spending.
The United Nations estimates a shortfall of 337 billion USD in spending annually on sustainability development for the worlds 48 developing economies, which is largely attributed to a low level of participation by the private sector.
What do you think, could such mandated programs globally go a long way to reaching Sustainable Development Goals?
To learn more about some of these Indian Botanicals, see my Indian botanical deep dive posts or visit www.phytoextractskp.com to subscribe to our newsletter.
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